Pentax 2011 Annual Report Download - page 21

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Income
A
s outlined above, net sales increased 2.7% year on year to ¥413,349 million. In addition, cost
cutting initiatives centering on fixed costs resulted in lower expenditure. As a result, income
before taxes from continuing operations rose 26.2% year on year, to ¥63,758 million.
The pretax margin was 15.4%, up 2.8 percentage points year on year from 12.6%.
Contributing factors to the increase in income before taxes included the following: The Company
reported brisk growth in sales of glass disks for hard disk drives (HDDs), optical lenses and
optical glass. In digital cameras, meanwhile, new product launches and price protection
initiatives combined with cost reductions in sales promotion to boost profitability, such that the
business went from posting a large pretax loss the previous fiscal year to delivering a pretax
profit in this.
In the Life Care business, healthcare related products (eyeglass lenses and contact lenses)
fared well, while in medical related products (endoscopes for medical use), profitability improved
year on year amid a recovery in the market.
On April 28, 2010, moreover, Hoya Corporation completed an agreement to transfer the hard
disk glass media manufacturing business and related assets operated by Hoya Corporation and
Hoya Magnetics Singapore, Pte., Ltd., its wholly owned subsidiary, to the U.S. company Western
Digital Corporation as of June 30, 2010. For the fiscal year under review, Hoya classified the
HDD glass media business as a discontinued operation, booking a ¥10,343 million gain on the
sale. Including income for the year from discontinued operations, income for the year from all
operations increased 43.5% year on year, to ¥59,579 million.
The hard disk market is expected to continue to see high growth going forward, mainly for
notebook PCs and digital household appliances. Following the transfer, Hoya aims to leverage
its glass materials technology and precision processing technology and concentrate
management resources on its HDD glass substrates, which currently holds the leading global
market share, to further enhance business competitiveness and achieve growth.
Return on assets (ROA) was 10.5%, and return on equity attributable to owners of the Company
(ROE) was 16.3%, both representing year-on-year improvements.